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Blacksands Petroleum reports that investors should not rely on the company's financial statements from October 31, 2007

TORONTO, Jan. 12 /CNW/ - Blacksands Petroleum, Inc. (OTC Bulletin Board:
BSPE) (the "Company") announced today that on January 9, 2009, the Company's
Audit Committee concluded that there is an accounting error in its financial
statements filed in its Form 10-KSB for the years ended October 31, 2007, and
in its Form 10-Qs for the quarters of January 31, 2008, April 30, 2008, and
July 31, 2008. As a result of these errors, the Company will restate the
financial statements described above to correct its accounting of Oil and Gas
Property Costs.
The error relates to the inappropriate capitalization of expenses as Oil
and Gas Property Costs in each period. Amounts that should have been expensed
have been capitalized, resulting in an understatement of the Company's net
loss, and an overstatement of the Company's Oil &amp; Gas Property Costs.
These adjustments to the Company's accounting practices and restatements
of prior year and interim period results have been discussed with the Audit
Committee of the Company's Board of Directors, as well as the Company's Board
of Directors, and the Company is reviewing and discussing these adjustments
and restatement issues with its current and prior independent registered
public accounting firms.
The Company will report its adjusted figures in its Form 10-K for the
year ended October 31, 2008 for both the year ended October 31, 2008, and for
the comparative figures of October 31, 2007, and will refile its Form 10-KSB
from October 31, 2007, and its Form 10-Qs from January 31, 2008, April 30,
2008, and July 31, 2008 as soon as possible.
In the meanwhile, the Company cautions investors that they should not
rely on the Company's financial statements.
About Blacksands
Blacksands Petroleum, through its 75% ownership of Access Energy Inc. - a
private Canadian company - is engaged in the business of exploring for,
developing and operating unconventional oil and gas projects. Such projects
may include oil produced from tar sands, also referred to as oil sands, or
bituminous sands, which are a combination of clay, sand, water, and bitumen.
"Paul A. Parisotto"
President &amp; CEO
Cautionary Note Concerning Forward-Looking Statements
This press release includes certain "forward-looking statements" within
the meaning of the United States Private Securities Litigation Reform Act of
1995. All statements, other than statements of historical fact, included
herein including, without limitation, the word "expect" and similar
expressions identify forward-looking statements. Forward-looking statements
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements. The
Company's forward-looking statements are based on the beliefs, expectations
and opinions of management on the date the statements are made, and the
Company does not assume any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions should change
except as required by law. For the reasons set forth above, investors should
not place undue reliance on forward-looking statements. The information
related to the restatements in this press release remains subject to review
and audit by Company's independent auditors and to completion of the audit of
the Company's 2008 financial statements. Although the Company does not expect
material changes to the information set forth in this release, the completion
of this process could result in further adjustments and the actual impacts may
be different from those currently anticipated as set forth in this press
release. There can be no assurance that the amount of any further adjustments
will not be material. Other risks and uncertainties disclosed in the Company's
10-KSB for the year ended October 31, 2007, filed with the United States
Securities and Exchange Commission, and other information released by the
Company from time to time and filed with the appropriate regulatory agencies.